Dividends aren’t that difficult to understand: they’re a part of the earnings of a company that is paid out to shareholders. Shareholders love them because, unlike a stock’s price, dividends provide a more stable income stream. But as with anything in the investing word, they’re neither 100% guaranteed, nor that simple.
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<p><a href="http://www.mint.com/blog/wp-content/uploads/2010/10/dividend-10-25.png"><img class="alignnone size-full wp-image-12783" title="dividend-10-25.png" src="http://www.mint.com/blog/wp-content/uploads/2010/10/dividend-10-25.png" alt="" width="900" height="2511" /></a></p>Mint.com <a href="http://www.mint.com/personal-finance/">Personal Finance Software</a>